Broadband News

ISPs clash on broadband prospects

On Friday, Ian Buckley from Zen Internet expressed his concerns over the future of broadband in this BBC news article which we also covered. In particular, worries were raised about some providers which are selling at very tiny profit margins (a reference to Pipex, we
assume) and the financial stability of these models. Reference was made to the many former ISPs who weren't able to withstand these pressures. This viewpoint was further strengthened with the
wires-only service which has an even shorter contract period of one month.

Alaistair Wyse, Technical Director of PlusNet has put forward a radically different
point of view claiming that PlusNet's service is sustainable and that the Internet service market is, and will remain highly competitive. His formula for the low cost model is not surprising:
Automation. He adds: "By providing users with the tools they need to get what they want from the Internet, (we give) the customer the power and choice they demand, without compromising the
quality of the relationship."

There is no doubt that the automated or standardised services will, with the growth of broadband, be more prevalent. In our view, the main issue holding demand at the moment is the wholesale
price of DSL services. [seb]